In my trade logs of August 18 and August 19, I had mentioned why I am not not trading even when NIFTY is making high above 11400
August 18 Post
August 19 Post
From the post
“All indicators are showing high bullishness. But as I said, since we are close to the monthly trend change level, I am being very cautious and not taking sides. What that means, is NIFTY can show extreme spurt which can throw off the traders with limited risk appetite. I’ll trade based on intraday signals.”
My Trades
No intraday trade. I hold positional short with a stop loss of 11340.
My observations for the day
NIFTY closed -0.84%. It gaped down and formed a bearish island reversal pattern.
BANK NIFTY closed -1.29%
VIX gained 3.31%
Advance Decline ratio is 15 to 35.
Reliance Industries and HDFC twins both down more than a percent.
Today, NIFTY formed a bearish pattern from a very important resistance zone. It also broke the trendline from the June start. This was a retest of the previous high zone which failed. Hence I believe this possibly can lead to the weakness in NIFTY for some days.
My view for tomorrow
I have a bearish bias for tomorrow. If not bearish, at least consolidation below 11350. For short 11350 is alert level and then 11370 can be a stop.
Last point
One good thing NIFTY is back below 11380, so I can again trade.
August 18 Post
August 19 Post
From the post
“All indicators are showing high bullishness. But as I said, since we are close to the monthly trend change level, I am being very cautious and not taking sides. What that means, is NIFTY can show extreme spurt which can throw off the traders with limited risk appetite. I’ll trade based on intraday signals.”
My Trades
No intraday trade. I hold positional short with a stop loss of 11340.
My observations for the day
NIFTY closed -0.84%. It gaped down and formed a bearish island reversal pattern.
BANK NIFTY closed -1.29%
VIX gained 3.31%
Advance Decline ratio is 15 to 35.
Reliance Industries and HDFC twins both down more than a percent.
Today, NIFTY formed a bearish pattern from a very important resistance zone. It also broke the trendline from the June start. This was a retest of the previous high zone which failed. Hence I believe this possibly can lead to the weakness in NIFTY for some days.
My view for tomorrow
I have a bearish bias for tomorrow. If not bearish, at least consolidation below 11350. For short 11350 is alert level and then 11370 can be a stop.
Last point
One good thing NIFTY is back below 11380, so I can again trade.